Configuration help needed: filtering rule applies incorrectly

I'm having some difficulties getting the rules to filter as required. Basically, I have a test group with two MAC addresses which are the wired and wireless NIC's of a laptop.
I have a rule configured to block traffic and have this group as a member.
A second rule is an Allow All rule.
It seems the laptop is actually using the Allow All rule and not being picked up by the first rule. I tried the same with my PC with the same result. Changing the Allow All rule to block prevents Internet access as expected.

RULES
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#1 - Test
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IPv4 based, both directions on the LAN interface
Rate limit is combined Bytes/s and Blocked
Source is "Test Group" with any Source port
All other options are left default

#2 - Allow All
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Any protocol, Unlimited
Any Source and Destination, all interfaces